Rollovers Pick Up As Nifty Moves Above 8,900 

Major Indian equity indices gained for the fourth straight session reclaiming crucial levels. The Nifty 50 index advanced 0.3 percent to move above 8,900-mark. Across all series, its futures added 3 percent in open interest reflecting further accumulation of long positions.

Nifty rollovers standing at 43 percent picked considerably on Tuesday, higher than previous 3-month average of 37 percent. This reflected the mood of traders’ turning more keen to carry positions forward into the next series.

The Nifty Bank index gained nearly 1 percent and added 14 percent in its futures open interest across all series reflecting fresh buying. Foreign institutional investors (FIIs) sold index futures worth Rs 1,017 crore on a net basis.

The India Volatility Index (VIX) fell further by 0.6 percent to 13.52 reflecting contraction in option premiums, especially those for index puts. Maximum open interest remained with the 9,000 call and 8,800 put which roughly indicates a range for this expiry.

FIIs bought 13,955 index calls and unwound 3,257 index puts on a net basis.